The major objective is to examine how young children's cognitive understanding of the social world influences their interactions with a friend of the same age. Very little work has been done which attempts to relate social cognition to social behavior. Fifty-five dyads of 3 1/2 year old children, each dyad composed of friends, participated in the three sessions of study. First, the child was videotaped during free play with his friend. The coding of the free play behaviors focused on (a) the degree to which the child accommodated his responses to input from the other child; and (b) the content of the child's behavior in conflict interactions. In the second session, the child was given a number of tasks assessing aspects of role-taking ability. These tasks are designed to take another person's point of view, that is, awareness that another person may have a different perspective from one's own. In the third session, the child was given the McCarthy Scales of Children's Abilities, a standardized intelligence test.